Press Release Archives

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• 2005

New Eastbridge study finds debate over
indemnity vs. expense-based voluntary medical

AVON, CONNECTICUT, USA (June 21, 2007)

Which is better: expense-based voluntary medical or indemnity? According to a recent survey of providers and distributors in this market, the answer depends on who you are asking and this person’s prior experience and, to a lesser degree, target markets.

Those with a health insurance background usually believe that expense-based plans are better whereas those from a general benefits or worksite background often favor indemnity plans. They believe that brokers, employers, and employees are also more familiar with expense-based plans and that larger companies tend to prefer these plans. On the other hand, those with a preference for expense-based plans feel that the indemnity-based products match up better with the association and affinity-based markets.

But if you ask someone from a general benefits background or from the voluntary/worksite market, they will tell you that the indemnity plans are better. They believe that the coverage is much easier to explain and more easily customized by an employer based on a particular price point and/or the company’s specific needs. Many also feel that the indemnity-based benefits are simply better, especially the first-dollar coverage. In general, more of those interviewed believe that indemnity designs are superior and will dominate (or continue to dominate) in the future.

Eastbridge Consulting Group’s newest spotlight report, Trends in Voluntary Medical Products, provides more opinions on the expense versus indemnity debate and looks in-depth at current voluntary medical plan designs. It also shares the concerns of leaders in this market regarding the sales and future potential of voluntary medical coverage. For more information on the study or to purchase a copy of the report (for just $500), email Eastbridge at info@eastbridge.com or call (860) 676-9633.

Eastbridge Consulting Group, Inc. is a marketing advisory firm serving insurance and financial services organizations in the United States and Canada.